Retired federal employees under the Contributory Pension Scheme (CPS) will begin receiving an extra ₦32,000 in their monthly pensions, following the approval of a ₦758 billion bond by President Bola Ahmed Tinubu to clear outstanding pension liabilities.
The increment is designed to align retirees’ benefits with the National Minimum Wage Amendment Act 2024 and its consequential adjustments. It will apply across the education, health, security, and Armed Forces sectors under the CPS, regardless of individual retirement savings.
On August 6, President Tinubu directed the “prompt implementation of long-overdue pension increases and a minimum pension guarantee” to provide a safety net for vulnerable retirees.
An official of the National Pension Commission (PenCom) confirmed that, with the concurrence of the National Assembly, proceeds from the bond will soon be released to settle the retirees.
PenCom’s Director-General, Omolola Oloworaran, explained that the ₦758 billion package will be distributed across three categories:
₦253 billion for accrued rights of workers employed before the CPS began in 2004 or nearing retirement at that time;
₦387.5 billion to settle pension increases dating back to 2007;
₦107 billion for the Pension Protection Fund, created to boost pensions for low-income earners.
Oloworaran described the intervention as critical to restoring confidence in the CPS, noting it resolves nearly two decades of unpaid pension adjustments.
The National Salaries, Incomes and Wages Commission (NSIWC) had earlier confirmed the adjustment, assuring that retirees would receive an additional ₦32,000 monthly under the new minimum wage framework.
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